Peru readying stricter oversight of LPG industry

Peru’s energy and mines ministry has begun consultation for a proposed regulation to improve efficiency and safety across the LPG commercialization chain.

In November, the ministry announced potential changes to modify the framework in a bid to combat informality among other challenges facing LPG stakeholders.

Calls to address industry shortfalls gained impetus after an LPG cistern truck exploded in the Villa El Salvador district of Lima region in January 2020, which set off a fire killing over 30 people and injuring another 20.

The draft regulation includes the implementation of stricter measures to ensure that sanctioned sellers of the fuel comply with closure orders, greater oversight of cylinder handling and contractual accountability, and the implementation of a technological platform.

Information on the proposed modifications, including supporting documents and how to submit comments, is available here.

Up until the COVID-19 pandemic, the fuel’s use had been increasing year on year and in November, LPG was the second highest fuel sold in the country.

Source: Osinergmin 1H20 hydrocarbons report

Source: Energy and mines ministry

ANTI-COMPETITIVE INVESTIGATIONS

In a related note, Hania Pérez de Cuéllar, head of antitrust authority Indecopi, told congress’ energy and mines committee that 17 preliminary fuel market investigations are underway.

The committee invited the official to report on an increase in the price of bottled LPG.

Jesús Espinoza, Indecopi’s technical secretary of the free competition defense committee, said however that “not every price increase is due to an agreement, various causes can generate a price increase.”

Espinoza attributed the latest hike principally to an increase at the producer level, specifically Pluspetrol, but highlighted that the adjustment corresponds to the reference price published by energy and mining investment regulator Osinergmin.

Also Read Free determination of the price of LPG in Peru will ensure supply of demand, Peru updates mechanisms to make the determination of fuel prices transparent and Vale GLP benefits thousands of Peruvian households in 1,835 districts nationwide

Source: Osinergmin 1H20 hydrocarbons report